Buffera has biffed the VAT man after a long battle over tax on the company’s Kids Collection.
Baby products were already VAT exempt, but Buff-maker Buffera had contested the charge levied on Junior and Child-labelled products.
Company secretary Mark Sarah said: “After several years of hard work campaigning behind the scenes, presenting our arguments and building a strong case, we are delighted with this outcome.
“Based on other product precedents, where the designs featured clearly targeted the under-12s, we have won our case and HMRC has conceded that Junior and Child labelled product are now VAT exempt,” says Sarah.
The exemption of VAT on the Junior and Child Buff Headwear products effectively means a £2.50 decrease in the price to the consumer for Kids-sized Original Buff.
The change in price became effective at one minute past midnight on 1 January and Buffera says all trade customers will benefit from this whichever ordering channel they use.
“The removal of VAT on the whole of the Kids Collection will mean more sales all round and make more of our products accessible to more consumers.”
The bad news is that, after five years without change, the company has had to increase the price of its Buff Headwear.
Sarah said: “Having absorbed an increase in VAT and fluctuations in the exchange rate, Buffera has reluctantly made increases in its Buff® Headwear price list. However, we are optimistic retailers will appreciate the benefit from an improved margin on most products.”